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Oil slightly higher in Asia

Oil traded slightly higher in Asia today but the longer-term trend is lower despite expectations the OPEC cartel could announce another production cut late this month, analysts said.

business Updated: Nov 14, 2008 09:53 IST

Oil traded slightly higher in Asia today but the longer-term trend is lower despite expectations the OPEC cartel could announce another production cut late this month, analysts said.

New York's main futures contract, light sweet crude for delivery in December, rose 32 cents to $ 58.56 a barrel after a gain of $ 2.08 to $58.24 on the New York Mercantile Exchange yesterday.

Brent North Sea crude for January delivery rose 27 cents to $ 56.51 a barrel.

The December contract expired at the close of trading in London yesterday, down 38 cents at $ 51.99.

Oil prices have been trading in line with equity markets, which were higher in Asia today after Wall Street's powerful rebound, said Victor Shum of Purvin and Gertz international energy consultants in Singapore.

"I would say that given the fears about global recession, I wouldn't trust this bounce in oil pricing and the bounce in stock markets," he said.

Since scaling historic highs above 147 dollars in July, prices have shed about 60 per cent on mounting evidence of slowing global economic growth and energy demand.

The Organisation of the Petroleum Exporting Countries (OPEC) was "very likely" to hold an emergency meeting on November 29 in Cairo to discuss tumbling crude prices, an OPEC source told AFP yesterday.

The cartel's president, Chakib Khelil, indicated last weekend that output may be further reduced if oil prices remain below the cartel's preferred range of $ 70 to $ 90 a barrel.